S5204Referred to Committee

SMART Savings Act of 2026

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2026-07-30
Introduced
1
Cosponsors
S
ⓘ
Type

Sponsor

John Barrasso
John Barrasso
Republican · WY · Senator
Votes with party: 76.3% (877 recorded votes)

Full profile: /officials/B001261

Source: Congress.gov · FEC

Cosponsors (1)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Finance. (text: CR S4390)

2026-07-30

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

The proposal would change tax rules to allow people with individual retirement accounts and similar savings plans to make certain types of investments or business deals that are normally prohibited, without facing tax penalties. This could let account owners invest in things like real estate or private businesses through their retirement savings in ways currently not allowed. The change would primarily affect individuals saving for retirement and the financial institutions that manage these accounts.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 5204 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 5204 To amend the Internal Revenue Code of 1986 to exempt individual account plans from certain prohibited transaction rules. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES July 30, 2026 Mr. Barrasso (for himself and Mrs. Blackburn) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exempt individual account plans from certain prohibited transaction rules. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Simplifying Modern Access to Retirement Tools for Savings Act of 2026'' or the ``SMART Savings Act of 2026''. SEC. 2. EXEMPTION FROM PROHIBITED TRANSACTION RULES. (a) In General.--Paragraph (1) of section 4975(e) of the Internal Revenue Code of 1986 is amended to read as follows: ``(1) Plan.--For purposes of this section, the term `plan' means a trust described in section 401(a) which forms a part of a plan, or a plan described in section 403(a), which trust or plan is exempt from tax under section 501(a).''. (b) Conforming Amendments.-- (1) Section 4975(c) of the Internal Revenue Code of 1986 is amended-- (A) by striking paragraphs (3), (4), (5), and (6), and (B) by redesignating paragraph (7) as paragraph (3). (2) Section 4975(f)(8)(E) of such Code is amended by striking clause (ii) and by redesignating clause (iii) as clause (ii). (c) Preservation of Self-Dealing Prohibitions.--Section 408(e)(2)(A) of the Internal Revenue Code of 1986 is amended to read as follows: ``(A) In general.-- ``(i) Self-dealing.--If, during any taxable year of the individual for whose benefit any individual retirement account is established, that individual or the individual's beneficiary deals with the income or assets of a plan in the individual's own interest or for the individual's own account or receives consideration for the individual's own personal account from any party dealing with the plan in connection with a transaction involving the income or assets of the plan, other than the receipt of any relationship benefits, such account ceases to be an individual retirement account as of the first day of such taxable year. For purposes of this paragraph-- ``(I) the individual for whose benefit any account was established is treated as the creator of such account, ``(II) the separate account for any individual within an individual retirement account maintained by an employer or association of employees is treated as a separate individual retirement account, and ``(III) each individual retirement plan of the individual shall be treated as a separate contract. ``(ii) Relationship benefits.--For purposes of clause (i), the term `relationship benefits' means reduced cost or no-cost products or services or enhanced or improved products or services or other benefits received by a person pursuant to an arrangement in which the account value of, or the fees incurred for services provided to, an individual retirement account are taken into account for purposes of determining eligibility to receive such benefit.''. (d) Effective Date.--The amendments made by this section shall apply to transactions occurring after the date of the enactment of this Act. <all>
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